RAM Act of 2023 Reshoring American Manufacturing Act of 2023
Impact
The proposed tax credits would allow businesses to claim a refund of up to $25 million for qualified reshoring expenses. Over the years, as manufacturing jobs have been outsourced to countries like China, the U.S. has faced significant economic challenges, including job losses in manufacturing sectors. By promoting the return of manufacturing jobs, HB2571 is expected to positively impact job growth and local economies. The tax credits would start at 100% for the years 2023 and 2024, tapering down to 80% in 2025, and 60% in 2026, encouraging immediate action from companies considering reshoring.
Summary
House Bill 2571, also known as the Reshoring American Manufacturing Act of 2023, aims to incentivize the relocation of manufacturing equipment from China back to the United States. This legislation introduces a tax credit for eligible expenses associated with moving manufacturing equipment and is designed to revitalize American manufacturing by making it more financially viable for companies to bring operations back to U.S. soil. The bill facilitates a safer and more controlled environment for domestic manufacturing, which supporters argue is crucial for national security and economic independence.
Contention
Despite its advantages, the bill has met with skepticism and opposition from various parties who argue it may not address the underlying factors that lead to offshoring, such as labor costs and regulatory environments. Critics suggest that simply providing tax credits may not be sufficient to reverse decades of manufacturing trends and that additional measures may be needed to ensure a competitive environment for American manufacturing. Additionally, concerns about the bill's fiscal impact on the federal budget and its long-term sustainability are also points of contention among lawmakers.
Medical Manufacturing, Economic Development, and Sustainability Act of 2023 or the MMEDS Act of 2023 This bill provides incentives for relocating medical manufacturing facilities in the United States and for manufacturing medical products (i.e., drugs and devices) in economically distressed zones. Specifically, the bill allows a income tax credit for 40% of the sum of wages paid in a medical manufacturing economically distressed zone, employee fringe benefit expenses, and depreciation and amortization allowances with respect to qualified medical manufacturing facility property, and a credit for economically distressed zone products and services acquired by domestic medical manufacturers. The bill increases the credit rate for minority businesses.
Relative to tenant and contract manufacturers of beer, wine, and liquor; allowing pharmacists to administer influenza, COVID-19, and other FDA licensed vaccines without explicit approval from the general court; and, restricting the purchase of real property on or around military installations.